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What people actually complain about in life insurance

Ask anyone what goes wrong with life insurance and they will say the company refused to pay. In the regulator’s own record of 928 complaints, that is not the biggest problem. 32% are about how the policy was sold. Claim handling is 19%.

Every complaint, by what it was about

CategoryComplaintsShare
Policyholder service38642%
Marketing and sales29532%
Claim handling17719%
Underwriting667%

Why this is the opposite of what people expect

The fear that stops people buying burial insurance is that the company will find a reason not to pay when the time comes. It is a reasonable fear and it is why the two year waiting period matters so much. But it is not what most complaints are about.

Add the two largest categories together and roughly two thirds of complaints are about the company being difficult to deal with while the policy is alive. People cannot get a reply, the billing is wrong, or the policy turned out not to be what they were sold. Claims are the third category, not the first.

That should change what you check before you buy. Ratings agencies measure whether an insurer can pay. They say nothing about whether you will be able to reach a human in year seven when the payment method changes and the notice goes to an old address.

The ten most common complaints, exactly as filed

ComplaintFiled
Delays or no response184
Misrepresentation125
Claim delay70
Premium notice or billing40
Policy service delay by the insurer36
Claim procedure32
Unsatisfactory settlement or offer31
Premiums misquoted26
Producer handling26
Coverage Question26

Which companies appear most

Read this before the table

This is a count, not a score. A company that writes ten times more policies will attract roughly ten times more complaints while treating people exactly as well. Nothing here adjusts for size, so the order below is not a ranking of which insurer is better, and we will not present it as one. It is published because the register is public and readers should be able to see it, not because it answers the question you probably came with.

CompanyComplaints
PHL Variable Insurance Company76
Transamerica Life Insurance Company50
Metropolitan Life Insurance Company45
American General Life Insurance Company40
John Hancock Life Insurance Company (USA)37
Brighthouse Life Insurance Company36
Prudential Insurance Company of America34
ReliaStar Life Insurance Company33
ReliaStar Life Insurance Company of New York21
Protective Life Insurance Company20
Lincoln National Life Insurance Company (The)19
United of Omaha Life Insurance Company17

Method, and what this cannot tell you

Cite this

Free to quote with a link back. If you want a cut we have not published, ask.

Burial Estimator analysis of Connecticut Insurance Department complaint data, 2022 to 2026. https://burialestimator.com/research/life-insurance-complaints

Common questions

What do people complain about most with life insurance?

Not denied claims. Across 928 individual life complaints filed with the Connecticut Insurance Department, the largest category is policyholder service and the second is marketing and sales. The single most common specific complaint is delays or no response from the insurer. Claim handling is the third largest category, at about 19%.

Does a high complaint count mean a company is bad?

Not by itself. Complaint counts track how much business a company writes, so a large insurer will always record more complaints than a small one even when it treats people identically. A count is only meaningful once it is adjusted for market share, which is what the NAIC complaint index does. The proportions on this page, meaning what complaints are about, are not distorted by company size and are the fairer figure.

What does misrepresentation mean on a complaint?

That the policy did not do what the buyer understood it would do. In burial insurance the usual version is somebody being sold a guaranteed acceptance policy, which pays nothing for the first two years except a refund of premiums, without that being made clear. It is the most avoidable complaint on the list, and asking one question before signing avoids it: is this policy level benefit, graded, or guaranteed issue?

Which policies pay from day one · The Funeral Price Index · Carrier ratings and what they measure

Sources cited

  1. Connecticut Insurance Department complaints, State of Connecticut open data
  2. Connecticut Insurance Department, consumer affairs
  3. NAIC Consumer Information Source